Overall we continue to see many challenges associated with the markets for Malaysian palm oil but we remain confident that Malaysian palm oil will continue to remain competitive, vibrant and a much sought after commodity in the coming years.

Editor’s Note: In January 2018, the EU parliament voted in favor of a total ban on palm oil biofuels. On June 14, 2018, that plan was rejected by EU lawmakers, thanks in part to a well-directed campaign from the Malaysian palm oil industry. The below commentary, from Malaysian Palm Oil Council (MPOC) CEO Kalyana Sundram, describes the successful campaign and its impact on the future of Malaysian palm oil production.

On June 14, 2018, the EU Trilogue between the EU Parliament, European Council and European Commission reached an agreement that completely removes from the EU’s final Renewable Energy Directive (RED) text the proposed 2021 Palm Oil biofuel ban.

This is also part of an ambitious, EU goal on increasing the use of renewable energy by 2030. The Trilogue deliberations were keenly monitored by palm oil-producing nations including Malaysia since the EU Parliament voted strongly to ban the use of palm biofuels by 2021. The debate on palm oil has been ongoing for almost 18 months and the current decision not banning palm biofuel in 2021 is much welcome and timely.

Malaysia and other palm oil producers had rallied against the proposed palm biofuel ban. We protested that EU was practicing crop apartheid against palm oil while other oils and fats feedstocks were allowed in their biofuel mix until 2030. Another strong protest was that these EU actions were non-WTO compliant and hindered the very principles of free trade.

Malaysian opposition to the proposed ban was mobilized through the Ministry of Plantation Industries and Commodities and its palm oil agencies including MPOC, MPOB and MPOCC. We were ably assisted by various other Ministries and our Ambassadors/Embassies in the EU. The country’s smallholders also acted against the proposed ban, staging a protest and presenting a petition to the EU Mission in Kuala Lumpur, since the EU actions threatened the livelihood of more than 650,000 oil palm smallholders in the country. These actions were further underscored by Malaysia’s direct engagement of key European nations and successfully extracting their commitments not to support the proposed palm oil biofuel ban.

As a result of these and other concrete actions undertaken by the Ministry of Plantation Industries and Commodities, MPOC and other palm oil agencies along with MITI, Wisma Putra and the undivided attention of our Ambassadors in the EU, the following positive outcomes are recorded:

On June 14, when the EU lawmakers reached an agreement not to ban palm oil-based biofuel by 2021 and instead opted to propose a phase-out of palm biofuel by 2030, we welcomed the decision as a victory for Malaysian palm oil producers.

The phase-out decision was a part of a more expansive agreement to update the EU’s Renewable Energy Directive, which included a binding 32 percent target of renewables in the EU energy.

The EU, however, has proposed that palm oil be phased out in its RED mandated energy mix by 2030. This could now be based on a freeze imposed on the levels of palm oil imports into EU in 2019. This we estimate could be in the region of 8.0 million MT of palm oil in total of which about 60 percent or 4.8 Million MT would be intended for renewable energy uses.

The Trilogue negotiated outcome would next have to be approved by both the EU Parliament and the Council, but this is usually seen only as a formality.

In January 2018, the EU Parliament voted overwhelmingly in favor of a total ban on all palm oil biofuels, from 2021. That plan was rejected by the EU Commission and by EU governments, following a well-directed campaign from Malaysia and indeed other palm oil producer countries.

To be clear: The final text of the RED agreed by the negotiators, did not include any ban on palm oil biofuels. All explicit criticism of palm oil was also removed from the final RED text. This is a strong victory for Malaysia since from the very beginning we challenged the proposed ban by presenting evidence and various documents that demonstrated that

Malaysian palm oil industry was not a driver of deforestation since the country currently maintains more than 50 percent of its land under forest and green cover.

Palm oil is mostly produced sustainably and certified as such including through internationally recognized sustainability certification systems.

We further reinforced our commitment towards sustainability by mandating that all palm oil produced in the country will be made mandatory by end 2019 through the MSPO and in compliance with a battery of federal and state legislations.

At MPOC, while we breathe a sigh of relief from these positive negotiated outcomes, we are the first to acknowledge that we have our work cut out. There remains a very strong anti-palm oil sentiment especially among European consumers who associate all palm oil with deforestation, climate change and a threat to wildlife and biodiversity.

We plan to address these through greater consultation and on-ground actions by collaborating further with our industry partners.

The EU will probably re-engage our industry with new demands and we will continue to address these through various channels already in place including with the EU Commission, Parliamentarians and EU Council.

It is possible that certification standards and associated demands will become more stringent and even tied to traceability in the supply chain. These will be enhanced through collaboration among all the key players in the Malaysian supply chain.

The EU has stated that palm oil biofuel will be phased out by 2030. The devil will be in the details and MPOC along with others will review these conditions to ensure they are WTO compliant and compatible with any other special trade arrangements such as the EU-Malaysia FTA that could emerge in the near future.

We plan to enhance our engagement with palm oil end users in Europe to better understand their specific challenges and requirements while drawing up greater collaborative programs that will keep them loyal to palm oil.

MPOC will meanwhile aggressively develop alternate markets for Malaysian palm oil in the run-up to 2030.

Overall we continue to see many challenges associated with the markets for Malaysian palm oil but we remain confident that Malaysian palm oil will continue to remain competitive, vibrant and a much sought after commodity in the coming years.

These stringent standards will soon become mandatory in Malaysia. That’s good news because more than half of the palm oil imported into the U.S is from this eco-focused country. Palm oil is Malaysia’s number one export.

The experts have spoken. Palm oil is good for our planet and its people as long as it’s produced sustainably. Responsible manufacturers use palm oil that has been certified sustainable, meaning it has been produced in a way that complies with environmental and societal criteria. There are several palm oil certification standards currently in use. This article takes a closer look at two common standards, Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO).

Roundtable on Sustainable Palm OilRSPO was developed by an international team of palm oil producers, traders, investors and nonprofits in 2004. The first shipments of RSPO-certified palm oil were produced in Malaysia and became available in 2008. As of April 2018, 19 percent of the global palm oil supply (or 12.46 million tons) is RSPO certified.

To become RSPO certified, growers must meet a set of environmental and social criteria designed to minimize negative impacts of palm oil production. These includes agreeing not to clear primary forests or areas of significant biodiversity, reducing pesticide use and treating workers according to local and international labor standards.

RSPO has been praised for promoting the growth and use of sustainable palm oil. It has helped educate millions about the sustainability of this important crop. When grown responsibly, palm oil is incredibly land efficient. Of the major crops (oil palm, soybean sunflower and canola), oil palm occupies the least land, but produces the most oil. A single acre of oil palm produces 11 times more oil than soybeans, and 10 times more than sunflower.

RSPO has also been criticized, especially by environmental nonprofits who feel the standards don’t do enough to protect pristine forests or palm oil laborers. The standards don’t address climate protection. Greenpeace research shows RSPO, “is little more than greenwash.” The international organization also recently revealed massive rainforest destruction in Indonesia, allegedly caused by RSPO-certified companies. Some RSPO-member companies even support a EU palm oil ban, which could accelerate deforestation. This is making many environmentalists wonder: Is this certification enough?

Malaysian Sustainable Palm OilMalaysia, which produces nearly half of the world’s RSPO-certified palm oil, developed its own certification build upon RSPO’s foundation and meet local needs. The MSPO certification program was developed by the Malaysian government with input from an international team of academic and environmental stakeholders. It’s not aimed at competing with other certification methods, but rather supporting Malaysia’s people, environment and wildlife.

MSPO certification covers all aspects of palm oil production, from the field to the final product. The standards affirm the country’s commitment to the planet, its people and responsible palm oil production.

This nationwide plan helps Malaysia conserve its rainforests. In 1992, at the Rio Earth Summit, Malaysia pledged to keep at least 50 percent of its land under forest cover. It has kept that promise. A Guardian article on MSPO praised the program’s ability to “create a nationwide conservation landscape which could see the protection of tigers in Peninsular Malaysia, the elephants of Sabah and the orangutans of Sarawak in safe habitats.”

This nationwide program also supports Malaysia’s independent oil palm farmers, who found other certification standards onerous. In Malaysia 40 percent of palm-planted lands are tended by these family famers (called smallholders). Policies and financial assistance are in place to help smallholders obtain certification and compete fairly in the global palm oil market.

The MSPO program was launched in 2015 and already has certified more than 889,000 hectares, approximately 20 percent of Malaysia’s palm-planted land.

These stringent standards will soon become mandatory in Malaysia. That’s good news because more than half of the palm oil imported into the U.S is from this eco-focused country. Palm oil is Malaysia’s number one export.

All Malaysia oil palm plantations must be certified by the end of 2019. Malaysian Palm Oil Council CEO Dr. Kalyana Sundram explains, “MSPO certification is yet another strong tactic that Malaysia is using to lead the world by example,” said. “We are intentionally paving the way for other countries who rely on the authenticity of their products, such as Italy with its olive oil, to ensure the trade and consumers that their products are pure and responsibly produced.”

Thankfully, most American companies have committed to using certified sustainable palm oil. Consumers may find certification seals on product labels or on manufacturers’ corporate responsibility websites.

American food manufacturers love Malaysian palm oil. This versatile and sustainable ingredient is found in many packaged products, from our favorite cookies and granola bars to breads and frozen pizzas. But with today’s consumer penchant for choosing foods produced closer to home, why are food producers choosing an oil grown thousands of miles away instead of a locally produced fat? It comes down to science.

Palm oil’s physical composition makes it a healthy alternative to trans fatsFor years, food manufacturers used partially hydrogenated oils (PHOs) to give their products a rich, creamy texture and long shelf life. The hydrogenation process turns a liquid oil, often soybean or canola, into a more solid fat. Unfortunately, this industrial process also produces a harmful byproduct, trans fats, known to increase heart disease risk. The Food and Drug Adminishttration has severely restricted PHOs use in the American food supply. Many food manufacturers have returned to using tropical fats, which are naturally more solid at room temperature. Malaysian palm oil’s balanced fatty acid composition – 50 percent unsaturated fats and 50 percent saturated fats – makes it an ideal and healthy choice.

Palm oil production puts less stress on the environment than other edible oilsDuring the 20th century, the Earth’s population ballooned from 1.6 billion to more than six billion. We’re now at more than seven billion. To provide enough nutritious food for each person without putting undue stress on the environment, experts suggest turning to high-yield and sustainably produced crops such as Malaysian palm oil. Oil palm plantations – palm oil is derived from the fruit of the Elaeis guineensis (oil palm) tree – produce significantly more oil than annual crops, such as corn, soybean and canola. A single acre of oil palm produces 11 times more oil than soybeans, and 10 times more than sunflower. Of the major oil crops, oil palm occupies the least land, but produces the most oil. Research is also underway to improve this astonishing yield, enabling Malaysia to increase production without stressing the environment. Plus, being a perennial tree crop, the supply of palm oil is reliable, and not as easily affected by weather and other agricultural issues.

Malaysian palm oil is uniquely versatile and heat stableAll oils begin to smoke and break down into harmful chemicals when overheated, but thanks to Malaysian palm oil’s high quality and physical composition, it is more heat stable than many other oils. Palm oil’s smoke point is in excess of 450 degrees Fahrenheit, much higher than other better-for-you oils. Olive oil begins to degrade at 380 degrees Fahrenheit and coconut at 347 degrees.

With these facts, it’s no wonder that food manufacturers, as well as science-savvy consumers, are embracing the use of Malaysian certified sustainable palm oil.

The Malaysian palm oil industry, known for decades as the leader in responsible palm oil production, is successfully addressing concerns that have plagued the global palm oil industry for decades. The industry’s ground-breaking national palm oil certification program tackles key issues including deforestation and workers’ rights. The Malaysian Sustainable Palm Oil (MSPO) certification differentiates this country’s responsible palm oil from the competition.

Malaysia is the world’s second largest producer of palm oil. In 2008, the tropical country became the first to produce and export certified sustainable palm oil. By the end of 2019, the country plans to have 100 percent of its palm oil MSPO certified.

DeforestationThe MSPO standards prohibit deforestation.Malaysia has committed to retaining at least 50 percent of its total land cover under natural forest cover. Planting on lands with high biodiversity value is not allowed unless it is carried out in strict compliance with national or state biodiversity legislation.

Workers’ RightsThe MSPO standards dictate clear and strong requirements on palm oil industry workers’ health and safety. Employees are allowed to form and join trade unions, and facilitate collective bargaining agreements. The MSPO standards prohibit the use of forced or trafficked labor as required by Malaysian law.

Burning of landsThe MSPO standards state that the use of fire for land preparation and waste disposal should be avoided. Biomass recycling and zero-burning practices are encouraged. Palm oil is derived from the fruit of the oil palm tree, in a process similar to olive oil production. Unlike common oilseed crops such as soy, corn and canola (rapeseed) which need to be planted annually, oil palm trees grow and produce fruit for up to 25 years before replanting is needed.

Peatland plantingThe MSPO standards require best-practice agricultural practices involving cultivation on peatland. The standards have strict requirements for water levels in the field groundwater table and collection drain.

Malaysian palm oil producers protect natural resources Malaysia has committed to retaining at least 50 percent of its total land cover under natural forest cover. It restricts burning, encourages recycling of organic waste, and has strict water and soil conservation policies in place.

Many American companies are actively promoting their green initiatives. From cutting greenhouse gas emissions to protecting forests to reducing food waste, these companies realize that today’s shoppers are more eco-conscious than the previous generation. Sustainability is no longer an option, it’s a necessity. That’s one reason why many American food manufacturers rely on Malaysian certified sustainable palm oil for their products. Malaysian palm oil, the world’s first sustainable vegetable oil, has been a quiet symbol of environmental responsibility for decades. And now the country is strengthening its sustainability commitment with its nationwide Malaysian Sustainable Palm Oil (MSPO) certification program. The term “sustainability” can have several interpretations. Here’s what it means for Malaysian palm oil:

Malaysian palm oil producers protect natural resourcesMalaysia has committed to retaining at least 50 percent of its total land cover under natural forest cover. It restricts burning, encourages recycling of organic waste, and has strict water and soil conservation policies in place. The progressive county, a leader in orangutan and elephant care, also has high-profile initiatives in place which protect endangered and threatened species, and help animals live in harmony with oil palm plantations.

Palm oil production must consider the community needsCountry-wide initiatives have been enacted to protect palm oil workers’ rights and help family famers – this group tends more than 40 percent of Malaysian oil palm-planted lands – increase their quality of life. Safe working conditions are mandated, forced or child labor is banned, and fair wages are paid. In fact, palm oil plantations are credited for lifting many Malaysians out of poverty.

Malaysian palm oil production should support international sustainability goalsThe MSPO program requires efficient energy use, such as the use of renewable energy sources, aimed to reduce greenhouse gas emissions. It also supports increasing palm oil yields which can help feed the growing planet without stressing our planet’s resources. Note: Palm oil is already the most land-efficient vegetable oil. Finally, MSPO standards support United Nationssustainable development goals which aim to end poverty, protect the planet and ensure prosperity for all.

Your favorite packaged food products may contain Malaysian certified sustainable palm oil. Many American food manufacturers have stopped using trans fat-laden partially hydrogenated oils in their products – the factory-created fat known to increase heart disease, diabetes and stroke risk – and have switched to this natural, tropical oil. Read labels, and you’ll spot palm oil in everything from your kids’ favorite cookies to your premium nutrition bar. Here’s how this better-for-you ingredient journeys from the tropics to your table.

Palm oil comes from the fruit of the oil palm tree

Malaysia is one of the world’s greenest countries. More than half of the nation is covered by a thick, dense forest. Amid these pristine, protected regions are eco-friendly plantations filled with oil palm trees. These trees produce bunches of oil-rich fruit year round. Malaysian oil palm plantations are incredibly high yielding. One acre of oil palm produces 11 times more oil than an acre of soybean, 10 times more than sunflower and 7 times more than canola. Best of all, because oil palm trees don’t need to be cleared and replanted annually they cause significantly less environmental impact than some other crops.

Family farmers tend many of Malaysia’s oil palm plantations

In Malaysia, more than 40 percent of the oil palm-planted land is tended by family farmers, called smallholders. These workers care for the trees and hand pick the fruit bunches which can weigh up 50 pounds each. Local organizations provide assistance to the smallholders, such as helping them gain a fair price for their product and earn in-demand MSPO sustainability certification. Many international experts have credited oil palm plantations and these organizations with reducing poverty in Malaysia.

Gentle processing produces the treasured oil

The fresh fruit bunches are delivered to the mill within 24 hours of picking. After going through a quality-sorting process, the bunches are carefully softened by steam. They are then placed in a rotating drum to isolate the individual fruitlets. Each bunch may contain up to 3000 individual fruitlets. In a process similar to olive oil production, the oil-rich fruitlets are pressed to extract the oil. The resulting crude oil, which is an intense orange color due to its abundant and nutritious carotenoid content, is then further purified to deliver the taste, texture and versatility that American manufacturers treasure.

There are only a few food products which are special enough to include their location of origin in their name. Chefs may prefer Madagascar vanilla, Parmigiano-Reggiano cheese and Irish butter. Many foodies appreciate New York pizza, Florida oranges and Sumatran coffee. There is another food for which geography is important, Malaysian palm oil. Thankfully a new certification, Malaysian Sustainable Palm Oil (MSPO), may help you identify this high-end ingredient in your favorite products. MSPO certification is exclusively for premium-quality palm oil sustainably grown and produced in Malaysia, a recognized leader in responsible palm oil production.

What is MSPO certification?The MSPO certification program, first launched in 2015, is quickly becoming known around the world as an indicator of quality. Its standards have been established to reflect the realities of the oil palm industry and address the concerns expressed by stakeholders. MSPO certification addresses the environmental, social and economic aspects of palm oil production. It also documents the importance of balancing these aspects for the good of all involved.

MSPO certification covers all aspects of palm oil production, from the field to the final product. It includes general principles as well as stringent criteria for all parties involved in palm oil production, from the independent family farmers who tend the trees which produce the oil-rich fruit to the organizations that assist these smallholders to the palm oil mills which process the oil.

The MSPO standards cover seven areas:

Management commitment and responsibility

Transparency

Compliance to legal requirements

Social responsibility, safety and employment conditions

Environment, natural resources, biodiversity and ecosystem services

Best practices

Development of new plantings

The multi-step procedure for MSPO certification includes both audits and peer reviews. These assure that best practices are consistently being followed. MSPO is administered through the independent Malaysian Palm Oil Certification Council.

We must engage with people around the world including legislators and decision makers such as the European Parliament, and tell them how we cultivate oil palm in tandem with forest conservation policies that are in place here.

Editor’s Note: The Malaysian Star interviewed Malaysian Palm Oil Council (MPOC)’s new CEO Dr. Kalyana Sundram. This is part three of four excerpts we’ll publish from this interview. Prior to being appointed to this post in January 2017, Sundram was MPOC’s Deputy CEO and Science and Environment Director. A well-respected professional, Sundram has served on committees at the World Health Organization, Food and Agriculture Organization, and the International Union of Nutritional Sciences. He holds 21 palm oil-related patents and has published extensively on palm oil.

Malaysian Star: Why is the Malaysian Sustainable Palm Oil (MSPO) certification crucial?Sundram: This is a big move forward for sustainability. We’ll work closely with the Plantation Industries and Commodities Ministry and the Malaysian Palm Oil Certification Council (MPOCC) to ensure that the objectives of MSPO are achieved and internationally accepted. We must engage with people around the world including legislators and decision makers such as the European Parliament, and tell them how we cultivate oil palm in tandem with forest conservation policies that are in place here.

Malaysian Star: You have over 35 years of industry experience. What are your plans for the MPOC?Sundram: To promote Malaysian palm oil globally. Our palm oil reaches over 150 countries and it is increasingly being used in many food formulations worldwide.

Before hitting the shelves, the oil has to be refined, processed, packed and branded. We want to reach out to every entity in the supply chain and of course, the end consumer, to convince them that this is a sustainably produced, wholesome, and nutritious, edible oil.

We have many years of science-backed research and information that speaks volumes about the neutrality of palm oil as an oil or a fat that’s suitable for every segment of the population. We want greater outreach to consumers because it is them who drive the acceptance and sale of palm oil. Locally, between 75 to 80 percent of our daily fat consumption comes from palm oil.

Malaysians generally have no reservations about palm oil products, but often, they don’t know what they’re consuming because they don’t pay attention to labels. Purchases are brand-driven. So, we have to do more to inform consumers about palm oil, its health benefits and what it can or cannot do.

Our supporters like Nutella and Smart Balance are proud to be associated with palm oil. Smart Balance from the U.S., of which I’m one of the inventors, clearly states on its label: ‘Palm oil from the sunny shores of Malaysia”. So, Americans accept our palm oil for its health benefits and quality.

There’s no reason to hide (the fact) that a product uses palm oil.

On the contrary, we must advertise it.

Malaysian Star: Malaysian palm oil turns 100 this year. What’s the way forward?Sundram: We must ensure that the industry remains viable and sustainable in the long term. Competition is intensifying. Land is limited so we must double the current 4.2 tonnes per hectare oil yield. To address the negative press, the MPOB must intensify its health and sustainability research. MPOC will then use this positive evidence to promote palm oil. Very exciting information, which we’ll be highlighting soon, is emerging.

The recent hype on Nutella, which uses Malaysian palm oil as a key ingredient, and the quoted cancer concerns about the contaminants 3-MCPD-esters and glycidyl esters (GE), is one of the many orchestrated attacks on our industry.

Editor’s Note: The Malaysian Star interviewed Malaysian Palm Oil Council (MPOC)’s new CEO Dr. Kalyana Sundram. This is part one of four excerpts we’ll publish from this interview. Prior to being appointed to this post in January 2017, Sundram was MPOC’s Deputy CEO and Science and Environment Director. A well-respected professional, Sundram has served on committees at the World Health Organization, Food and Agriculture Organization, and the International Union of Nutritional Sciences. He holds 21 palm oil-related patents and has published extensively on palm oil.

Malaysian Star: There’s lots of bad press regarding palm oil in the foreign media. Are we battling perception or fact?

This goes back to the 1980s with the anti-tropical oil campaign. We overcame that by investing extensively in research, including human clinical trials, to show that palm oil is wholesome and nutritious.

Then, they attacked us over deforestation, sustainability and conservation issues.

The contaminants occur in all oils and fats, not just palm oil. Malaysia was already working to reduce, and perhaps even eliminate, the 3-MCPD-esters and GE in certain palm products, before the Nutella episode.

By December, we expect to be the world’s first oil and fat producer to achieve that goal.

The only way to promote palm oil is with facts and figures. When we advertise, it’s always supported by verifiable facts. It’s not just putting up a pretty poster. I don’t mind a pretty lady supporting palm oil, but that lady must promote factually correct information.

Malaysian Star: What’s the biggest misconception?

Sundram: That it is less healthy because it’s cheaper than other seed oils and fats. Our palm oil quality is equivalent to any other oil or fat in the supermarket regardless of the price because on top of Malaysian food regulations, we have to follow international quality specifications such as those prescribed by Codex Alimentarius, the authority associated with FAO and WHO.

The Codex food quality standard for corn oil, olive oil, palm oil, sunflower oil or any oil for that matter, is prescribed under these international regulations. Whether you like it or not, palm oil’s a big component in the global food security basket particularly for the African continent, Middle East and the whole of Asia. We pride ourselves in providing a safe and healthy product, but at an affordable price. This has led to the misconception about the quality of palm oil. Our challenge is to change that mindset.

We’re passing on that savings to food processors, consumers and end users. That’s one of the selling points of Malaysian palm oil. And in Malaysia, the government even subsidizes cooking oil so that it remains affordable.

The real value of a bottle of palm olein is much higher. We’ve to work with all segments of the supply chain to assure consumers that this is a quality oil. Palm oil is a hidden ingredient in many products especially in the confectionery, margarine, oils and fats, animal feed, chemicals and cosmetics, industries.

We must make ourselves visible and gain the confidence of the consumer. We’re reaching out even to school kids to educate them about palm oil. We’re talking to celebrity chefs around the world and looking at ways to best promote, educate and empower consumers worldwide, but it’ll take time.

Producing sustainable palm oil isn’t just an option in Malaysia. It’s tradition. And confirming these high standards will soon become mandatory. Malaysia’s Ministry of Plantation Industries and Commodities (MPIC) announced that Malaysian Sustainable Palm Oil (MSPO) certification will become mandatory for all Malaysian palm oil producers by 2019. This certification program, first launched in 2015, helps ensure that all palm oil produced in the country is as good for the economy as it is for the environment and the Malaysian people.

Before this announcement, MSPO certification was obtained on a voluntary basis. The program is administered through the Malaysian Palm Oil Certification Council (MPOCC) which is the MPIC organization entrusted to promote the development, adoption and implementation of sustainable palm oil production. Under the Ministry’s proposed timeline for obtaining MSPO certification, plantation companies that are already Roundtable on Sustainable Palm Oil (RSPO) certified must obtain MSPO certification by December 31 2018, while companies without RSPO certification must obtain certification by June 30 2019. Financial assistance will be given to smallholders to assist them in achieving MSPO certification.

As of January 2017, Malaysia’s total planted area was 5.74 million hectares of which 1.15 million hectares were RSPO or MSPO certified. Malaysia’s goal of having 100 percent of its plantations certified by 2019 will further demonstrate the country’s good agricultural practices and sustainability initiatives.